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ABC Power is an Energy manufacturer in Saudi Arabia (fictitious example). It is going to hire a Merger and Acquisition advisor, ABC Power has SAR
ABC Power is an Energy manufacturer in Saudi Arabia (fictitious example). It is going to hire a Merger and Acquisition advisor, ABC Power has SAR 900 million in revenue, $90 million in EBITDA, and SAR180 million in debt. XYZ Power is a KSA Energy manufacturer. XYZ Power (Target Company) is being sold at a possible price of SAR 225 million. Albilad Capital proposes to act as ABC's M&A advisor. Goldman Sachs also wants to act as ABC's M&A advisor. Goldman Sachs told ABC Power management that it will be a better advisor than Albilad Capital because: . . More M&A experience (# 1 in global league tables) More M&A experience in the energy sector Larger M&A staff More valuation experiences Industry knowledge with an eight-person group of equity analysts in New York, who specialize in writing research on energy companies Fee structure of SAR 450,000 upfront and 1% success fee Ability to help ABC Power raise the SAR 225 million purchase price . Question 1: Pretend you are trying to convince ABC Power that Albilad Capital will provide better advice than Goldman Sachs. What are your arguments? Question 2: Pretend you are the CEO of ABC Power. What kind of questions will you ask Albilad Capital? Why is Albilad Capital better than Goldman for the. XYZ Power deal? Play the opposing side ABC Power is an Energy manufacturer in Saudi Arabia (fictitious example). It is going to hire a Merger and Acquisition advisor, ABC Power has SAR 900 million in revenue, $90 million in EBITDA, and SAR180 million in debt. XYZ Power is a KSA Energy manufacturer. XYZ Power (Target Company) is being sold at a possible price of SAR 225 million. Albilad Capital proposes to act as ABC's M&A advisor. Goldman Sachs also wants to act as ABC's M&A advisor. Goldman Sachs told ABC Power management that it will be a better advisor than Albilad Capital because: . . More M&A experience (# 1 in global league tables) More M&A experience in the energy sector Larger M&A staff More valuation experiences Industry knowledge with an eight-person group of equity analysts in New York, who specialize in writing research on energy companies Fee structure of SAR 450,000 upfront and 1% success fee Ability to help ABC Power raise the SAR 225 million purchase price . Question 1: Pretend you are trying to convince ABC Power that Albilad Capital will provide better advice than Goldman Sachs. What are your arguments? Question 2: Pretend you are the CEO of ABC Power. What kind of questions will you ask Albilad Capital? Why is Albilad Capital better than Goldman for the. XYZ Power deal? Play the opposing side
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